21. Explain how the gain or loss is computed on the sale of a piece of equipment. 22. What is the name of the tax rule that requires six months of depreciation expense to be taken in...

21. Explain how the gain or loss is computed on the sale of a piece of equipment.

22. What is the name of the tax rule that requires six months of depreciation expense to be taken in the year of purchase of the asset and the year of disposal regardless of the purchase date?

23. If a business chooses to use the straight-line method for tax purposes, how will this affect their income tax in the first year of an asset's life, compared to MACRS?

24. Explain how a business using the straight-line method would re-compute depreciation after revising the useful life estimate.

25. What account is debited to record an expenditure that extends the life of a plant asset such as equipment?